Renewable Energy is Not A Threat to Houston’s Economy
When running for office, Former President Donald Trump promised to defend oil and gas jobs in a time where many are calling for reduced carbon emissions, garnering him a lot of support from those working in fossil fuels (Domonoske). Trump acted upon this promise during his term in office by pulling out of the Paris Climate Accords. Mayors across the country, including Mayor Sylvester Turner of Houston, vowed to keep the Accords and implement a Climate Action Plan (Rotter). And according to Paper City Mag, now “The City of Houston sources 92% of its power from solar and wind energy” (Rotter). There has been pushback against Mayor Turner’s embrace of renewable energy because he is turning away from what powers Houston’s economy. With many cities following suit and the increased consumer use of renewable energy, the need for fossil fuels across the country is dwindling. We need renewable energy in order to prevent a large variety of consequences that will result from increased pollution caused by fossil fuels. However, fossil fuels are a large portion of the economy and create a large variety of jobs across the globe. I live and grew up in Houston, Texas, which is considered the world’s energy capital. I know so many people who work in oil or for energy companies. Throughout Houston, the influence of fossil fuel companies is extremely apparent. Because of this, Houstonians worry that the shift from fossil fuels to renewable energy sources poses a threat to their livelihoods. Many politicians have exacerbated this fear by calling climate action dangerous to the industry that is a large part of Texas’ economy, which they assert would result in the loss of so many jobs. While the shift to renewable energy will result in the loss of some jobs in fossil fuels, there will be a creation of many better jobs in renewable energy, and Houston’s economic landscape will remain relatively unaffected.
I think it is first important to understand why Houston is the energy capital of the world in order to understand the fear of a shift to renewable energy. First and foremost, Houston is a port city, located 50 miles from the Gulf of Mexico, and before the discovery of oil in Texas, 17 railroads converged in Houston (WWPP). This was extremely important once oil was discovered in Texas because it allows for extreme ease of transportation of oil and natural gas across the United States and the World. Oil was discovered in 1901 in Spindletop, Texas, a considerable distance from Houston, but The Texas Company (now know as Texaco) was offered a cheap price for an office building in Houston and many companies followed them there (WWPP). Also, the Houston ship channel underwent an expansion in 1910 in order to “accommodate larger and newer ships that could export crude oil” making it extremely useful for oil companies (WWPP). Houston remains such powerhouse in energy because the environment created by a high concentration of companies in a small area allows for a an easy flow in business (WWPP). This environment keeps existing energy businesses in Houston and attracts emerging businesses across the globe to have offices in Houston. 7 miles of Houston known as the Energy Corridor houses buildings for major petrochemical companies and surrounding it are homes filled with people who work for these companies. So since Houston’s initial economic success was built upon oil and natural gas, the move from fossil fuels to some feels like the removal of a cornerstone that could crumble the city. This feared collapse would theoretically lead to the loss of thousands of jobs in Houston, which could uproot communities and create an exodus of workers to more economically viable cities.
However, oil jobs are already very unstable compared to renewable energy jobs, and renewable energy will create millions of more stable jobs in Texas as Texas’ landscape is prime for developments in renewable energy. Because oil is so lucrative they are able to employ large numbers of people for higher wages but these jobs are volatile. The number of oil jobs often follows boom and bust cycles based on the price of oil, leading to cycling rounds of layoffs. In an interview with NPR, Daimon Rhea, an oil worker, felt like his “life depended on how much that barrel cost” (Domonoske). Petroleum jobs do pay 40% more than the national median (2020 U.S. Energy & Employment Report) which is more attractive when compared to 25% above average clean energy boasts (Muro Et. Al). But according to labor economist Julia Pollack, clean energy jobs are more stable than oil jobs, following a linear positive trend rather than the fluctuations that characterized oil jobs (Domonoske). This stability and the feeling that working for clean energy is working to save the planet for future generations has attracted some workers, but still so many remain not convinced to work in renewable energy.
Because there has been so much campaigning against renewable energy, fossil fuel workers reject working for renewables. A lot of the resistance from fossil fuel workers is fueled by the negative way certain politicians have framed many political actions on climate change. Texas Governor Greg Abbott called an executive order from President Biden that would freeze oil and gas leases on public lands a “hostile attack” on the oil and gas industry despite public property rarely being used for drilling (Natario). But Governor Abbott raised a good point in the press conference, that we can not assume that if fossil fuel workers lose their jobs that they can be retrained overnight to work in another part of the energy sector (Natario). Some skills do translate while others do not. So there must be a way to make that transition for workers smoother.
Thankfully there are already companies paving the way for programs that can help ex-fossil fuel workers find jobs. Companies like Workrise are working to find jobs in renewables for skilled workers in the oil and gas industry when they lose their jobs (Saul). Workrise also handles payroll and benefits for the workers, and in 2020 was able to find clean energy jobs such as building solar farms or fixing wind turbines for 4,500 workers (Saul). Still, there is a gap in pay between workers in fossil fuels and renewable energy. Workers can expect to make around $50,000 installing solar panels but $10,000 to $20,000 more in a similar fossil fuel construction job (Saul). This is where the Texas and United States government needs to step in. Subsidies for renewable energy companies or benefits for workers in renewable energy could attract workers more and make the transition from fossil fuels easier.
Finally, it is actually risky for Houston’s economy to continue to rely on fossil fuels. Houston’s economy is not diversified enough to withstand a collapse in oil prices, a threat that is looming due to competition from OPEC (Mintz). The Greater Houston Partnership estimated one-third of the GDP for the Houston area is directly tied to oil (Klump). In May of 2020, Saudi Arabia flooded the market with oil in an attempt to undercut Russia, which severely dropped oil prices, oil companies’ revenues, and their employee numbers (Mintz). Another crash could be catastrophic for Houston and oil workers, far more catastrophic than the adoption of renewable energy. And, by switching to renewable energy, we would be saving Houston’s economy by investing in an industry that is forecasted to be more important in the future. Houston is prime to support a shift to renewables because, according to writer Evan Mintz, “Texas is blessed with plenty of sun and wind and the nation’s only statewide energy grid, and Houston is filled with expertise on the business side of energy” (Mintz).
So not only is this shift to renewable energy inevitable, it is necessary. The decreasing supply of fossil fuels is inevitable, so it is important that more companies like Workrise are created rather than getting mad at the change. As Damien Rhea in his interview with NPR also said that his former colleagues in the oil and gas industry who are mad at renewable energy are like “they’re mailmen getting mad at email, times are changing. You have to adapt” (Domonoske).
Works Cited:
Domonoske, Camila. “Oil Jobs Are Big Risk, Big Pay. Green Energy Offers Stability And Passion.” NPR, NPR, 21 Oct. 2020, www.npr.org/2020/10/21/925504343/oil-jobs-are-big-risk-big-pay-green-energy-offers-stability-and-passion.
Klump, Edward. “ECONOMY: Houston: An Energy Capital Looks to Evolve.” ECONOMY: Houston: An Energy Capital Looks to Evolve — Thursday, May 31, 2018, 31 May 2018, www.eenews.net/stories/1060083017.
Mintz, Evan. “Houston Is Not Prepared for the Oil Bust.” Texas Monthly, 10 Mar. 2020, www.texasmonthly.com/news-politics/houston-not-prepared-oil-bust/.
Muro, Mark, et al. Advancing Inclusion Through Clean Energy Jobs. Apr. 2019, www.brookings.edu/wp-content/uploads/2019/04/2019.04_metro_Clean-Energy-Jobs_Report_Muro-Tomer-Shivaran-Kane.pdf#page=16.
NASEO & EFI. 2020 U.S. Energy & Employment Report. 2020, static1.squarespace.com/static/5a98cf80ec4eb7c5cd928c61/t/5ee78423c6fcc20e01b83896/1592230956175/USEER+2020+0615.pdf.
Natario, Nick. “Houston in Position to Create High-Paying Jobs in Alternative Energy, Expert Says.” ABC13 Houston, KTRK-TV, 28 Jan. 2021, abc13.com/houston-jobs-industry-renewable-energy-are-there-any-in/10101833/.
Rotter, Charles. Houston Ranks no. 1 in America in Renewable Energy use — no, really. Newstex, Chico, 2020. ProQuest, http://libproxy.usc.edu/login?url=https://www-proquest-com.libproxy1.usc.edu/blogs-podcasts-websites/houston-ranks-no-1-america-renewable-energy-use/docview/2407758833/se-2?accountid=14749.
Saul, Josh. “This Company Helps Roughnecks Find Renewable Energy Jobs.” Bloomberg.com, Bloomberg, 1 Mar. 2021, www.bloomberg.com/news/articles/2021-03-01/renewable-energy-jobs-for-oil-and-gas-workers-exist-workrise-is-finding-them.
World Wide Power Products. “Home.” New Used Generators Ends and Engines Houston TX Worldwide Power Products, www.wpowerproducts.com/news/why-did-houston-become-energy-capital-of-the-world/.
